| SBA
504 Loan
Program -
Small
Business
Administration
Loan |
| Purpose: |
Acquisition
of
commercial
real estate
or capital
machinery
&
equipment. |
| Loan
Amount: |
| Total
financing
package
up
to |
$3,800,000 |
|
First
Mortgage
Loan
up
to |
$2,500,000 |
| Bridge
Loan |
$1,300,000 |
|
| Interest
Rate: |
 First
Mortgage
Loan |
30-day
LIBOR
plus
spread,
adjusted
monthly |
 2nd
Mortgage/SBA
Debenture |
Fixed
rate
determined
by
SBA |
 Bridge
Loan |
30-day
LIBOR
plus
spread,
adjusted
monthly |
|
| Term: |
| First
Mortgage
Loan |
Up
to
25
years,
fully
amortizing |
| 2nd
Mortgage/SBA
Debenture |
Up
to
20
years,
fully
amortizing |
| Bridge
Loan |
90
Days |
|
| Prepayment
Penalty: |
| First
Mortgage
Loan |
1
year
lockout,
5%
in
year
1
declining
to
1%
in
year
6,
1%
there
after |
| 2nd
Mortgage/SBA
Debenture |
10%
in
year
1
declining
to
0%
in
year
10 |
| Bridge
Loan |
N/A |
|
| Origination
Fee: |
First
Mortgage
Loan -
Minimum 2.0%
2nd
Mortgage/SBA
Debenture -
Set by SBA/CDC |
| Bridge
Fee: |
Bridge
Loan -
Minimum 0.5%
| |
| Collateral
Position: |
1st &
2nd
Mortgage/Deeds
of Trust;
additional
collateral
may be used
to secure
loan.
| |
| Financial
Data: |
| Business: |
Three
years
of
historical
Federal
tax
returns.
Three
years
financial
statement
(if
available).
Interim
financial
statements
(within
90
days
of
submission).
One
year
of
projections
for
existing
business
or
two
years
for
start-ups.
| |
| Personal: |
Three
years
of
tax
returns
and
financial
statements
of
owners
with
20%
or
more
ownership
| |
|
| Third
Party
Reports: |
Appraisals
and
Environmental
| |
| Summary: |
The SBA
504 Loan
Program
provides
growing
businesses
with
long-term
financing
for the
purchase of
major fixed
assets, such
as
commercial
real estate.
| |
|
We encourage
you to apply
online for a
quick
pre-qualification
through our Get
A Loan
page.
|
|
Go
back to the Products
page. |
